The correct answer is: C. Narasimham Committee recommended making banking structure of the counting three tier
The Narasimham Committee was a committee set up by the Government of India in 1991 to review the Indian banking system. The committee recommended a number of reforms, including making the banking structure of the country three-tiered. This meant that there would be a central bank, commercial banks, and development banks.
The central bank is responsible for managing the country’s monetary policy and ensuring the stability of the financial system. Commercial banks are responsible for providing financial services to individuals and businesses. Development banks are responsible for providing long-term finance for infrastructure projects and other development activities.
The three-tier banking structure has been implemented in India and has helped to improve the efficiency and stability of the financial system.
The other options are incorrect.
- Option A is incorrect because granting loans to borrowers is one of the main functions of a bank. Banks make money by lending money to borrowers and charging interest on the loans.
- Option B is incorrect because banks can buy and sell shares and debentures on behalf of customers. This is called investment banking.
- Option D is incorrect because banks and development banks have different functions. Banks are primarily involved in providing financial services to individuals and businesses, while development banks are involved in providing long-term finance for infrastructure projects and other development activities.